Temu Reduces Dependence on the US Market and Its Impact on Sellers

Amid the increasingly tense U.S. political environment, Temu is actively adjusting its strategy to reduce dependence on the U.S. market. This move is aimed at coping with uncertainties, expanding global market share, and preparing for future sustainable development. This transformation is not only crucial to Temu’s own development, but also has a profound impact on merchants who rely on the platform.

Temu’s adjustments and impacts

Reduce dependence on the U.S. market

Temu currently accounts for 60% of total merchandise sales in the U.S. market, but the platform has set goals. It plans to reduce the U.S. market share from the current 60% to 30% in 2025, which means that the platform will pay more attention to the balanced development of the global market, reduce dependence on a single market, and reduce market risks.

Accelerate overseas business expansion

Temu is accelerating business expansion in regions such as Europe, the Middle East, Japan and South Korea. This strategic adjustment means that Temu's cooperative merchants must re-evaluate their inventory strategies and prioritize products that are popular in these emerging markets to meet the growing market demand. This also provides merchants with broader sales opportunities while also increasing their global market exposure.

Complexity and uncertainty in U.S. markets

Since its founding in the United States less than two years ago, Temu has attracted much attention but has also faced challenges of operational complexity and uncertainty. Earlier this month, the U.S. House of Representatives passed a landmark bill that, if ultimately approved, will have an impact on Temu's prospects in the U.S. market. Merchants need to respond and adjust to possible market changes and risks.

Financial status and overseas market investment

Although Temu has never publicly disclosed financial details, market analysts generally believe that the platform is still losing money. Over the past year, Temu has increased its investment in overseas markets to attract more shoppers. Since the third quarter of 2023, Temu's monthly active users in non-U.S. regions have exceeded those in the United States, according to data analytics company Sensor Tower. In addition, app downloads outside the United States have exceeded those in the United States.

Impact on Temu sellers

Temu’s strategic changes have had a direct impact on sellers. First, sellers need to adapt to market changes and reposition their products and marketing strategies to meet the needs of emerging markets. Second, sellers may need to find new logistics solutions to optimize their supply chains and reduce reliance on a single market.

market adaptability

Sellers need to quickly adapt to Temu’s new strategy and adjust their product lines to meet the specific needs of the new market.

Inventory management

As demand for items in Temu changes in different regions, sellers may need to re-evaluate their inventory management strategies to avoid overages or shortages.

risk diversification

For sellers who rely on the U.S. market, Temu’s adjustments provide opportunities for risk diversification and help reduce dependence on a single market.

What strategies should Temu merchants adopt?

Diversified supply chain

Merchants can reduce their dependence on the U.S. market and diversify business risks by expanding diversified supply chains and finding more overseas partners.

Optimize logistics and transportation

As Temu expands in the global market, merchants need to optimize logistics and transportation solutions and choose appropriate third-party transportation service providers to ensure that orders can be delivered to customers around the world in a timely and accurate manner.

Improve product quality and services

Facing competition in the global market, businesses need to continuously improve product quality and service levels, establish a good brand image, and win the trust and loyalty of customers.

Opportunities for third-party shipping services

During this transformation, third-party transportation services may hold the key to improvement. Third-party logistics (3PL) providers can help sellers better adapt to market changes and improve regional diversified logistics service capabilities through their multi-regional logistics distribution capabilities, information management systems and logistics service systems. This will not only help sellers expand their market scope and improve service levels, but also socialize, modernize and rationalize the circulation of goods.

Global logistics network

Third-party transportation service providers have global logistics networks that can help merchants achieve fast and convenient logistics distribution worldwide and improve customer satisfaction. Shopv provides sellers with more flexible logistics solutions to help them enter and adapt to new markets more efficiently.

Customized transportation solutions

Third-party transportation service providers can provide customized transportation solutions based on the needs of merchants, including air transportation, sea transportation, express delivery and other options to meet the needs and budgets of different merchants.

Professional customer service support

It can promptly and effectively solve the problems and challenges encountered by merchants during the transportation process, and provide full support and services.

Cost-effectiveness

By optimizing transportation routes and methods, third-party services may help sellers reduce transportation costs and increase profit margins.

In the context of Temu's strategic adjustment, merchants need to adjust their business strategies in a timely manner, respond flexibly to market changes, seize opportunities, and achieve sustainable development.

At the same time, the introduction of Shopv third-party transportation services may become the key to improving logistics efficiency, reducing costs, and adapting to new markets. By cooperating with professional third-party logistics partners, logistics problems can be solved for merchants, and sellers can better grasp the new business opportunities brought by Temu's global expansion.